The England international has had questions over his future at Old Trafford after Erik ten Hag relieved him of his role as captain.
The 30-year-old centre-back has to be considered a second choice behind Raphael Varane, Lisandro Martinez, Victor Lindelof and possibly Luke Shaw and Jonny Evans too.
He has been a rare starter under Ten Hag over the past 12 months. And now there is still no difference from before.
The defender has been linked with a move to West Ham this summer. But the transfer fell through as negotiations collapsed.
Phelan, who previously coached Maguire at Hull City.
Believes the former Red Devils captain can move up to a higher position on the pitch UFABET
“Harry came to the club from Sheffield United and he sometimes played as a defensive midfielder there.
“At Hull he has created the kind of player we thought he would be.”
Phelan the 60 year old was Sir Alex Ferguson’s right-hand man during his final five years as manager at Old Trafford.
Maguire moved to Hull from the Blades in the summer of 2014. And played a key role in helping the Tigers to promotion to the Premier League and performed well during 2016-17.
That led to a move to Leicester the following year. And in the summer of 2019 he moved to Manchester United for £80 million.
Phelan added: “We always knew he had strengths and weaknesses. Most of the players were there and then United came along and at that time Harry was a top player.
“Nobody can say he’s not a top player in that position after playing at Leicester.”
“Yes, the fee is very high. But you can’t control that.”
“When he came to United he did very well. He is calm on the ball.”
“What he doesn’t have is the right environment for the players in front of him, next to him. He’s being looked down upon for little reason.”